Correlation Between ANGLER GAMING and Insurance Australia
Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING and Insurance Australia at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ANGLER GAMING and Insurance Australia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANGLER GAMING PLC and Insurance Australia Group, you can compare the effects of market volatilities on ANGLER GAMING and Insurance Australia and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ANGLER GAMING with a short position of Insurance Australia. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and Insurance Australia.
Diversification Opportunities for ANGLER GAMING and Insurance Australia
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ANGLER and Insurance is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and Insurance Australia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insurance Australia and ANGLER GAMING is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ANGLER GAMING PLC are associated (or correlated) with Insurance Australia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insurance Australia has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and Insurance Australia go up and down completely randomly.
Pair Corralation between ANGLER GAMING and Insurance Australia
Assuming the 90 days horizon ANGLER GAMING PLC is expected to under-perform the Insurance Australia. In addition to that, ANGLER GAMING is 1.73 times more volatile than Insurance Australia Group. It trades about -0.16 of its total potential returns per unit of risk. Insurance Australia Group is currently generating about 0.32 per unit of volatility. If you would invest 438.00 in Insurance Australia Group on September 5, 2024 and sell it today you would earn a total of 77.00 from holding Insurance Australia Group or generate 17.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGLER GAMING PLC vs. Insurance Australia Group
Performance |
| Timeline |
| ANGLER GAMING PLC |
| Insurance Australia |
ANGLER GAMING and Insurance Australia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLER GAMING and Insurance Australia
The main advantage of trading using opposite ANGLER GAMING and Insurance Australia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING position performs unexpectedly, Insurance Australia can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Insurance Australia will offset losses from the drop in Insurance Australia's long position.| ANGLER GAMING vs. MeVis Medical Solutions | ANGLER GAMING vs. ONWARD MEDICAL BV | ANGLER GAMING vs. CVR Medical Corp | ANGLER GAMING vs. AVITA Medical |
| Insurance Australia vs. AEON STORES | Insurance Australia vs. FUYO GENERAL LEASE | Insurance Australia vs. United Rentals | Insurance Australia vs. SPARTAN STORES |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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